Technical analysts and executives of brokerage firms predicted that the Egyptian Exchange (EGX) will continue its upward trend this week, trading to reach 7,800 points on Sunday and breaking the main resistance level at 7,650 points.
The EGX kept moving upwards during last week, registering a 1.76% rise as it increased from 7,453.1 points to 7,618 points.
Mohamed Al-Assar, head of the technical analysis department at the National Bank of Kuwait (NBK) for investment in North Africa and the Middle East, said that EGX will likely continue its rise and will range between 7,500 points and 7,800 points on Sunday.
He added that EGX 30 has a chance to break the main resistance level of 7,650 points this week, which the market failed to break throughout the last month.
He ruled that the holy month of Ramadan can affect the EGX trading because the main index is expected to break the resistance level of 7,650 points, which would lead to an increase in the trading volumes. In addition, the EGX has not been affected by Ramadan in the past seven years.
Regarding Sunday trading, Al-Assar predicted that trading will gradually increase from 7,618 points until it breaks the resistance level of 7,650 points.
With regard to the expected performance of the most prominent stock shares, Al-Assar said SODIC’s shares are likely to range between EGP 10.9 and 11.8. Global Telecom shares are expected to range between EGP 2.95 and EGP 3.20, the Commercial International Bank (CIB) would range between EGP 41.5 and 44.5, Hermes between EGP 11.3 and 12.3, and Orascom Telecom Media and Technology’s (OTMT) between 0.68 and 0.71 points.
Adel Abdel Fattah, chairperson and managing director of the Egyptian Arabian Company Themar for Securities Brokerage (EAC), upheld this prediction, pointing out that the market’s liquidity will remain stable near EGP 500m.
Abdel Fattah predicted that EGX 30 will break the level of 7,700 points during this week’s trading after its good performance last week.